What Are Rental Agreements?
Rental agreements allow investors to participate in real estate ownership and receive income from tenant rentals. This includes residential properties, commercial spaces, retail outlets, and industrial facilities. Investors earn regular rental income while benefiting from property appreciation over time.
In Ghana's growing real estate market, rental agreements provide stable returns and inflation protection through tangible asset ownership.
Types of Rental Properties
Residential
Apartments, houses, and residential units with stable tenant demand.
Commercial
Office spaces, retail shops, and commercial properties with longer leases.
How You Earn Returns
Monthly Rent
Regular rental payments from tenants providing stable cash flow.
Property Appreciation
Increase in property value over time through market growth and improvements.
Example Return Calculation
Invest GHS 200,000 in a residential apartment generating GHS 2,000 monthly rent. Annual rental income: GHS 24,000 (12% yield). After expenses, net return of GHS 18,000 (9%) plus potential property appreciation of 5-10% annually.
Key Benefits
Tangible Asset
Investment backed by physical real estate
Inflation Protection
Rents and property values typically rise with inflation
Tax Advantages
Deductions for expenses, depreciation, and interest
Leverage Potential
Ability to use mortgage financing to enhance returns
Risks to Consider
Vacancy Risk
Properties may experience periods without tenants.
Tenant Default
Tenants may fail to pay rent or damage property.
Market Fluctuations
Property values and rental rates can decline.